It is no longer a secret, the largest bank is forced to admit that the climax of the mortgage loans to Wells Fargo (NYSE: WFC) and JP Morgan Chase (NYSE: JPM) and lift revenue last year, is rapidly disappearing. Although no bank becomes poor first-quarter earnings report, JP Morgan Chase CEO Jamie Dimon loans stagnant growth in the industry as a whole. Wales reported a dip in refinancing, has contributed to a profit last year, 65% of new mortgage loans, 76% from the same period last year.
All major banks
Bank of America (NYSE: BAC) pinch feeling to see its the marginal mortgage business jump, refinancing, 57% more than last year, but the news of the mortgage may cause this power died. U.S. Bancorp (NYSE: USB) profit from the previous year, unchanged from the previous quarter, Fitch notes that the cost savings may not continue to buoy income as mortgage activity slowed.
Powered regional bank PNC Financial (NYSE: PNC) also acknowledged that increasingly drowsy mortgage business, recently warned that loan growth is only about 5%, will rise this year, while commercial and industrial loans lead the way. Police continue to cut costs, such as staff positions and marketing costs, as well.
B, A and Wells Fargo
Bank of America (Bank of America) continue to counter the slim itself, hoping to keep more than 50% compared to the same period last year to increase its production by Project New BAC, it is the method of contrarian mortgage loan business trend of shrinking. This is a tall order, but the bank to use its new retail branch structure helps to make this goal a reality.
Bank of America (Bank of America) to open more modern branches, on these sites, it is desirable to increase the mortgage loans. CEO Brian Moynihan said the bank hired a new mortgage bankers in the first quarter of 1000, and has stepped up mortgage fulfillment department 4000. Moynihan said that B of A will hire more bankers, as well as to maintain the mortgage initiated by the rotation of the wheels.
Reduction in the business of housing loans will not cause well give up. The bank did not tops in the industry standing still, it is not going to start now. The company just broke ground on a 265,000-square-foot expansion project, in West Des Moines, Iowa, Facility, at a cost of $ 100,000,000.
This is not all. Wells plans to additional enhance its mortgage financing in Arizona, and has hired more than 5,000 new employees in the first quarter of this year. Clearly, the rich and clean up the mess, JP Morgan Chase mortgage sector layoffs will increase revenue by promoting a new loan.
Bank of America and Wells Fargo (Wells Fargo) beat the the mortgage downturn forecast in the mortgage banks assault? Time will tell, but they are certainly laudable attempt.
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